As more Americans stream, listen to Spotify, Zoom, share files via Dropbox, bank online and do business over the internet, demand for data has skyrocketed to an all-time high.

A slew of data center projects are planned, both in Northwest Indiana and around the Hoosier State.

Billions of dollars are flowing into data centers from some of the biggest names in tech.

Microsoft plans to invest $1 billion in a 245,000-square-foot data center in the Radius Industrial Park in LaPorte, which is billed as the largest economic development project in the city's history. Amazon Web Services plans to invest $11 billion in a data center that would employ 1,000 workers in New Carlisle, just east of the LaPorte County line in St. Joseph County.

Google intends to build a $2 billion data center that will employ 200 workers in Fort Wayne. Facebook parent company Meta announced an $800 million data center that will employ 100 workers in Jeffersonville, just across the Ohio River from Louisville in southern Indiana.

Dallas-based Provident Realty Advisors also had planned to build a $1.3 billion data center at the former Brassie Golf Course on Pearson Road in Chesterton, but cancelled plans at that site after residents voiced concerns about noise, pollution, property values and the impact on wetlands and wildlife.

The flood of plans followed the construction of the Digital Crossroads data center at the site of the former State Line Generating Plant on Lake Michigan in Hammond. Developer Tom Dakich said the data center could grow to as big as 1 million square feet with $200 million in investment, if demand warrants.

All told, about $14.8 billion worth of data center projects are now underway in Indiana. And more could be coming to the Region. There are at least four data center projects now looking at sites in Lake and Porter counties, economic development consultant Matt Reardon said.

"There's a lot of activity. They're now doing due diligence with their site selection," he said.

The infrastructure of the modern internet age, data center projects can require massive investment that can eclipse even major industrial plants.

"I've been doing this a long time, and $25 million used to be a major deal. Now $1 billion or $800 million is a major deal. It's just different dynamic," Reardon said.

Global investment in data centers hit $36 billion last year, the second highest on record, according to a report by the law firm Linklaters. An estimated $22 billion was invested in data centers worldwide through the first five months of this year.

The developers behind Digital Crossroads, which opened in 2020, helped create legislation that facilitated more data centers in the Hoosier State, Reardon said.

"Indiana is really competitive in that market," he said. "We're seeing a sharp rise in demand across the Region."

New developments of all types are flocking to the state, said attorney Jim Wieser, who represents many firms coming to Northwest Indiana.

"Indiana has a strong business climate and a tax structure climate that's really attractive," he said. "It's not an exaggeration that I get calls several times a month about new projects that range from residential to commercial to light industrial. More businesses are discovering Northwest Indiana."

The demand for data centers is strong in particular, given how much data society is consuming these days, Reardon said.

"How do you work now? On your phone. On your computer. With Dropbox. It's cloud-based. There's been a seismic change," he said. "When you watch something on streaming, that data has to come from somewhere."

Data center development depends on a number of factors, particularly the availability of power, as they are energy-intensive, Reardon said.

"The demand for power is extraordinary," he said. "It should be interesting to see how that's dealt with. NIPSCO has been engaged in site selection discussions throughout their territory and aggressively responding to all the data center activity."

NIPSCO Director of Communications Wendy Lussier said the Merrillville-based gas and electric utility is poised to meet the growing demand.

"Attracting data centers requires thoughtful planning and careful coordination with state agencies, lawmakers and regulatory stakeholders to help ensure everyone benefits from this growth opportunity," Lussier said. "Data centers are energy-intensive users requiring a considerable amount of reliable energy resources and infrastructure. While they can have significant energy needs like traditional large industrial users, they are also different in some key respects. Energy requirements for data centers can be hundreds (if not thousands) of megawatts, and they also need this power 24/7 and do not ramp up and down."

The utility has the infrastructure in place to ramp up capacity as more data centers come online, Lussier said.

"NIPSCO operates in a region where there’s a robust electric and natural gas transmission system, available energy capacity, supportive energy policy and land availability. And while there’s adequate capacity and reserves on today’s system, the addition of any large customer — especially data centers — are addressed on an individual basis with close coordination among the broader grid operator, regulators and other key stakeholders," she said. "NIPSCO’s 2024 Integrated Resource Plan process is also ongoing as we’re planning now for tomorrow’s energy needs, including the future potential load growth scenarios and needs associated with large-scale projects such as data centers."

More data center development in northern Indiana will help shore up NIPSCO's large customer base, hedging against any further deindustrialization that may occur.

"Data centers help diversify NIPSCO’s large customer makeup and reduce exposure to potential volatility from unforeseen changes in the steel and manufacturing industry — which can have an adverse effect on customers as a result. Additionally, all customers benefit from the shared services costs that can be spread across an expanded customer base," she said. "We will not compromise the reliability of the service we provide, and a key priority is to ensure that existing customers are appropriately protected (in terms of both reliability and cost) with the addition of any new customer growth. "